WARNING! Brace Yourself and Your Wealth for a Whole New "Second Wave" of Housing Hurt About to CRASH DOWN on Wall Street, the U.S. Economy, and the American Homeowner...
The "Second Wave"
HOUSING TSUNAMI
of 2007-2011
Just when you were hoping we were "done" with plunging property prices... think again... and then BATTEN DOWN THE HATCHES for what history will remember as the worst property-led recession of the last 76 years!
Wall Street... Main Street... nobody's money is safe.
However, I can give you three very simple, solid ways to "hedge" your retirement and property savings against this coming mega-bust...
All included in the new Emergency Financial Survival Toolkit I'd like to send you FREE, with your permission...
Dear Friend,
A tidal wave of hurt is heading for your money.
Not just toward the equity you have in your house. But everything you have invested, saved, or otherwise set aside. And if you don't do something to protect yourself, you stand to lose everything.
I know that sounds dire.
But I'm really that worried.
Fortunately, there are steps you can take to protect yourself.
I'll show you three of them -- each a solid hedge against the coming bust -- that I urge you to consider taking today, right now. As soon as you're finished reading this report.
First off, I'll give you the proof that the onslaught's coming. Then it will be up to you to decide how you want to protect yourself.
Make no mistake -- I'm serious about this warning. This is no hiccup on Wall Street. It's a sweeping wipeout of wealth. Quite possibly, the most widespread fallout in the mainstream financial community in the last 76 years.
Bigger than Enron. Bigger than the bust of 2000. Worse than '90-'91 and worse than the stock market bust of '87. Yet as far as I can tell, nobody's watching. Nobody's preparing.
Worse, experts who should know better are telling you the exact opposite lies ahead.
What I see as a crisis, they see as a hiccup. What I'll show you is just the tip of the iceberg, which they see as a so-called "buying opportunity." They couldn't be more wrong. And no advice could be more dangerous. As you'll see in the paragraphs below.
I urge you to pay close attention.
If you do nothing else, at least heed this part of my message.
Now is NOT a time to rush out and buy more stocks. OR to load up on new "bargains" in the property market. Quite the opposite. As you're about to see, the smartest thing you could do right now is...
"GET OFF THE BEACH!"
What could I mean by that?
Two years ago, I'm sure you remember, killer "tsunami" waves crashed down on miles of Asian coastline. Moments before, there was no warning. Skies were blue. A breeze blew in from the ocean.
Then the ocean sucked out the tide, by hundreds of feet. Tourists snapped pictures. Children and locals ran out to collect shells and play with fish, flopping in puddles... oblivious to the crushing wall of water on the horizon. Until it was too late. The devastation wiped out nearly 300,000 victims, in barely the blink of an eye.
I'm not trying to make light of a tragedy.
What I'm telling you is that it's not always easy to see what's on the horizon. What looks like an opportunity can also be the lull before the real disaster comes crashing down. And right now, in the U.S. property market, we're facing exactly that kind of situation.
The tide on soaring real estate has ebbed... to some, it might even look like a chance to wander out and snap up property at new "low" prices... BUT DON'T BE FOOLED! Because the real wave of devastation -- in property and on Wall Street -- still looms on the horizon.
See, right now, it's easy for you to believe that maybe the worst could be behind us.
After all, it's all over the headlines. And all over the press. Supposedly, says the myth, the economy has never been healthier. Wall Street can only go up. And property? The most recent bust, says the myth, has only opened doors for Americans to start buying all over again.
| - The New York Times, |
But if you're as savvy as I believe you are, you know exactly what I've seen myself... as head of a multimillion dollar financial research organization... that nothing could be further from the truth!
To prove it to you, I'm sharing with you -- today -- a very different "blueprint" of the events that lie ahead. Before you're through, you'll see, as I now do, that the true bottom-line reality is indeed very different from what the Pollyannas of the financial press want us to believe...
In short...
Not only is the most dramatic property asset bubble of modern times clearly OVER... but the slip in real estate prices we've seen so far is not even CLOSE to being the beginning of the real devastation to come... not just in property, or even Wall Street, but across the ENTIRE U.S. economy, now and for at least the next three-four years, if not longer.
If you're not ready yet, you'll want to be.
A radical "reset" in over $1 trillion worth of shaky loans... re-doubling foreclosure rates... a bailout much bigger than the S&L crisis of the '80s... tremors that rattle the U.S. job market... plunging stock prices for retail, manufacturing, and car companies... and a wipeout for just about every mainstream "safe" investment you've ever heard of.
There's no question a secondary housing bust this big will happen. The only question now is when. And, as I show you below, it will likely happen a lot sooner than most experts think.
That's why I don't want to leave you without any safeguard.
Which is why I'm writing to you today...
Three Solid Layers of Protection Against the
Next Wave of Falling Property Prices Ahead
I want to show you three very powerful yet simple ways to protect yourself.
They're simple to follow. And they're yours FREE, as part of something new that my team has put together. I call it the Emergency Financial Survival Toolkit: Triple Protection Against the Coming Collapse . And I'll rush it to you immediately, just as soon as you give me permission.
Here's what you'll find inside:
- One of these protective steps offers you government-backed gains against what my team sees as the inevitable economy-wide U.S. recession ahead. The faster things come unraveled, the faster your "safe-haven" gains in this one opportunity -- a little-known fund -- go up
- The second "hedge" is another simple, single move. And a sandbag for your financial fortress, specifically designed to protect you as the collapse of the credit market crushes U.S. bonds -- especially junk bonds
- The third move gives you a clever way to leverage a whole basketful of falling housing and home improvement stocks with a single, money-multiplying trade. You'll find this very easy to do. And very lucrative, especially during the fallout ahead
Like I said, I'll rush you the details on this triple-layered money protection strategy FREE, as part of the Emergency Financial Survival Toolkit I had prepared especially for this coming, crushing event.
This Emergency Financial Survival Toolkit also gives you several other steps you'll want to take now. Plus, it will give you even better ways for you to deal with unstable markets every month for at least the next 12 months ahead.
There's no charge for this triple-hedge protection strategy.
Just ask and I'll send it. - The Wall Street Journal
I'll sleep better just knowing you have all this in your hands.
"A little over a year ago, buyers couldn't wait to sign contracts to purchase homes. Now, many can't wait to get out of them... buyers are backing away from deals in droves."
After all, just think about what this could mean otherwise.
Nearly 70% of Americans either own or are in the process of paying off their homes. Everyone WANTS to believe the worst has come and gone, because that's what's best for them. But we don't always get the market outcomes we want or expect.
All I'm asking you... begging you... urging you to do... is let me show you a different vision of what lies ahead. And let me show you how to protect yourself and your money against potentially devastating impacts that nobody expects, including...
- A whole new round of plunging house prices that doubles the losses we've already seen...
- A mortgage time bomb that will send defaults and foreclosures soaring across America...
- And finally, a financial blowout that will send banks and most stocks into a tailspin...
This is NOT what the fawning fortunetellers of Washington, Wall Street, or the real estate industry want you to believe. But that doesn't mean they're not real risks. Or that you shouldn't be ready when this whole new wave of financial wipeout arrives.
You don't have to take my word on this. I'll simply lay out the proof for each of these dangers for you, and then you can decide.
If you disagree, fine. Set down this report and move on, taking your chances.
But if you see the same vision I see, if any of these shocking outcomes seems even slightly possible to you, then all you need to do is tell me where to send our new and completely original three-step wealth protection strategy, absolutely free.
It's really that simple.
You won't get such a straightforward, no-punches-pulled offer from everyone. In fact, you may not realize it, but forget tomorrow's market... because the powers that be have already lied to you -- on a huge scale -- about what's already happening in today's property market.
How so?
Let me show you what I mean...
200,000 Home Sales That Never Happened!
At the end of December 2006, the Census Bureau released a report.
The report said contracts on new home sales -- after falling for nine months straight -- had ticked up. Was that good news? Some key sources said yes. But look closer, because even the Census Bureau admits the way they tally those numbers doesn't work.
From the Census Bureau Web site: "As a result of our methodology, if conditions are worsening in the marketplace and cancellations are high, sales would be temporarily overestimated."
Suppose you put a contract on a house in November, then cancel in December. The sale never happens. But the contract still shows up in the Census Bureau report.
Says Mark Zandi, the chief economist over at Moody's/Economy.com, "Given the rise in cancellation rates... between 150,000- 200,000 home sales are being counted that did not actually occur."
That's a shocking discovery.
Looking forward, here's one you'll find even more shocking...
By 2011, Your House Could Be
Worth 43% LESS Than It Is Now
Dr. Robert Schiller, the same bestselling author and Stanford economist who called the tech stock bust back in his 2001, recently analyzed 116 years of U.S. housing-data.
Take a look at this chart showing what he discovered...
It's easy to think your house is worth more, just comparing the dollars you paid for it with the dollars other houses around you sell for today.
But what happens when you account for how weak today's dollars are compared with the dollars of yesteryear? Using inflation-adjusted prices, you can see how property boom and bust cycles have whipsawed property investors back and forth more than once in the last century.
Combined with real periods of plunging housing prices... plenty of homeowners are no better off now than they were decades ago. What's more, you can also see in the data that not only has property NOT always gone up... it's gone down, giving back pricing gains... over and over again!
In that last part of the line on the chart... what happens if today's BUST cycle matches the property-price busts of the '70s or '80s? In those cycles, real estate reversed until all the gains were gone.
This time around, the price collapse would last until 2011... with a plunge as deep as 43.5%!
I've shown you what nobody else is willing to show you.
Now let me show you how this bust cycle will happen...
Deadly Domino #1:
Building Permit Applications
Plummet as Confidence Dries Up >
In Torrey Pines -- near downtown Las Vegas -- you'll find one gorgeous four-bedroom house after another. All new. Each on generous 7,000 square-foot lots. There's one problem. Many of these houses -- up to 10 per block -- are empty. It's like driving through an upscale version of a shell-shocked urban neighborhood, only instead of boarded-up windows and graffiti, you've got stucco and central air conditioning. And new "ghost towns" like Torrey Pines have cropped up all over formerly "hot" U.S. property markets. Why? "It's economics 101," says Thomas L., one of the brokers who works the Vegas market. "Buyers aren't buying... supply exceeds the demand and we just have more inventory than we have buyers." In the valley around Vegas, you'll find more than 22,000 homes on the market. Out of those, 9,800 are empty . Desperate sellers hope they can at least rent the spaces, even at cut rates. Meanwhile, 45% of all desperate developers say they're ready to cut prices too. But here's the real worry... Proof That Builders See a Even bigger than houses that won't sell now is the fact that huge numbers of U.S. builders don't see houses selling all too well down the road, either. Take Doug McGraw. McGraw heads up a Florida construction company near Fort Lauderdale. Just recently, he was ready to build a 205-unit condo near Fort Lauderdale. Now he's not. Why? "[Spending on houses] hasn't just slowed down a little bit," says McGraw, "it's slowed down a lot... anybody who did not already have a shovel in the dirt has chosen to wait until the market settles." And it might be a long wait. Take a look at this chart... If you're a builder about to sink millions into a new development, what's the first thing you do? You make sure you can get a permit to start developing the land. That's why experts consider the rate of housing permit applications such a good hidden indicator of the future economy. When it's going up, the economy will likely go up. Because the property industry drives a huge chunk of the job market. But also because when applications are soaring, it means that a boom is exactly what builders -- who live and breathe by predicting the future economy -- are betting on. What does it say when building permit applications start to plummet? It means builders see plunging home sales, a tight economy, and even a recession on the horizon. Pay attention. Because this is exactly the signal I'm showing you in the chart above. Early last year, the total new number of housing permit applications fell off a cliff. - BusinessWeek This is like looking at a crystal ball, telling you what the property-developing pros foresee for the broad economy -- not just for 2007, but for 2008, 2009, and even further out. And what the current breaking point above tells us is, in a word, outright ugly. Given that a mind-blowing 43.15% of all the new jobs in America since 2001 have come from the housing market... this should be terrifying news, even if you don't own a home. Because, see, when nearly half the new jobs in the U.S. are in jeopardy... when major building companies, the banks that back them, and the other businesses that depend on a housing boom see income vaporize... that can't help but spell bad things for the broad economy, even well outside the housing market. How ominous is the current signal? By the tail end of last year, overall applications for building permits were down 31.3% from the year prior... and at their lowest permit total since December 1997. Says Tim Eller, the CEO of the third largest homebuilder in the U.S., Centex, "We are navigating through one of the most challenging housing environments in the past 25 years." Buyers are even canceling sales contracts. Developers are dumping inventory. And still, builders are wracking up losses. Centex, for instance, just wrote off $510 million worth of value on property it both owned and had options to buy. And the company is about to let another $450 million in land and options go up in smoke. No wonder even Bill Gates is dumping shares... Yep. During the boom, Gates got caught up in the mania and added seven different homebuilding stocks to the portfolio of the famous multibillion dollar charity trust he runs with his wife. This past December, he dumped them. Stocks like Centex Corp., KB Home, Pulte Homes Inc., Lennar Corp., Beazer Homes USA Inc., Ryland Group Inc. and WCI Communities Inc. all got kicked out of his fund. Bruce Karatz, head of KB Homes, says this is the worst he's ever seen... including the collapsing market of the early 1990s. And Gary Gordon, head of the mortgage investment firm Annaly Capital, says falling construction alone could shear 2% off the U.S. GDP. That's more than $250 billion -- gone in a puff of smoke! Bigger Than the dot-com Bomb or S&L Bust... Most catastrophes have a ripple effect. Maybe you remember, for instance, when the Savings & Loan crisis came to a head in 1989. Over 1,000 small banks made big, bad loans that nearly put them out of business forever. Dubya's daddy, George Bush Sr., engineered a $125 billion bailout. Wall Street seized up like a Plymouth in January... the U.S. deficits soared... and the U.S. economy slipped into a two-year recession. Or how about when the dot-com bomb finally fell out of the sky? Millions lost billions, so-called government "surpluses" vaporized, and again we got a recession. Even Wall Street didn't recover for another three years. Some stocks never recovered at all, disappearing from the ticker entirely. Here's the thing... In the 1989 crisis, fewer people owned real estate. In the 2000 tech bust, not everybody owned tech stocks. But in both cases, the impact was far reaching. What does that mean now, when most Americans own property AND a mortgage, alongside their stock portfolios? What does it mean when so many of the new jobs in America -- as many as 43%, remember -- came from the housing industry? In the tidal wave of falling property prices ahead, it means tighter spending. Lost jobs. Troubles for retail, restaurants, car dealers, advertising companies, jewelers, remodeling contractors, furniture manufacturers, banks, electronic retailers, and more. Foreign investors pull their cash out of the U.S. market too. It's like a virus -- it can't help but spread. When it does, what are you supposed to do?
Mega-Bust on the Horizon
It's plunged ever since.
"For cash-strapped homeowners, it was a pitch they couldn't refuse: Refinance your mortgage at a bargain rate and cut your payments in half... ?but those who took the bait are in for a nasty surprise: payments are about to skyrocket."
and Twice as Devastating for Your Wealth